How did platforms fare in FY25?

Wrapping up the reporting season for the 2024–25 financial year, Money Management rounds up the results of Australia’s platforms.

The past 12 months have seen platforms grow their share of the financial adviser market with a focus on delivering greater efficiency and service offerings.

Looking ahead to the next 12 months, platform providers intend to explore emerging markets and expand market share across key client segments.

HUB24

HUB24 reported a 13 per cent increase in its adviser base over the 2024–25 financial year, increasing by 572 bringing the total active advisers on the platform up to 5,097 which the firm said marks the “highest annual increase since FY21”.

This growth, the firm explained in an ASX release, came off the back of 143 new distribution agreements that saw the firm expand its reach to access more than 77 per cent of the total adviser market.

According to its full-year results released in August, the firm saw a 30 per cent increase in total funds under administration (FUA), now hitting $136.4 billion, while the platform FUA increased to $112.7 billion showing an increase of 34 per cent from the previous financial year. Net inflows for the platform rose 25 per cent for this period, hitting $19.8 billion, including $4 billion from large migrations.

Looking to FY26, HUB24 said it is “uniquely positioned” to capitalise on emerging opportunities in the wealth industry.

“With positive momentum across all parts of the business, we expect further growth moving into FY26. Based on our expectations of ongoing strong net inflows onto the HUB24 platform, the company is now targeting a platform FUA range of $148–162 billion for FY27 (excluding PARS FUA),” it said.

Netwealth

Netwealth returned a net profit after tax (NPAT) of $116 million for FY25, marking a 38.8 per cent increase on the previous year on the back of strong net flows which were up 40.4 per cent, hitting $15.8 billion and resulting in a total FUA of $112.8 billion at 30 June.

Managed accounts saw a significant increase, jumping 56.5 per cent from FY24 to $4.3 billion, while total income rose 27.1 per cent to $324.4 million for FY25, and platform revenue grew 26.8 per cent to $316.4 million.

The firm also saw a 5.6 per cent increase in the number of advisers utilising the platform, rising to 3,971 active users, which Netwealth chief executive Matt Heine said, on its results webinar, was a “key driver of our business and what gives us a very high level of confidence about our future growth”.

As Netwealth looks to continue this momentum, Heine explained the platform’s strategy will focus on targeting what he termed the “affluent adviser” market – those looking after clients with account balances between $500,000 and $750,000, though he clarified that this wouldn’t impact what solutions the firm develops.

Notably, Netwealth will also be looking at boosting efficiency for advisers as 7.2 million Australians are expected to have more complex financial circumstances by 2050, increasing the demand for service.

Heine said: “The opportunity for us, as well as the challenge, is to make sure that we can work with our customers and partner with advice firms to make them as efficient as possible, so that they can continue to onboard and manage more and more clients at scale. Really, that’s where we see the big benefit, and that’s where we’re investing heavily into the future.”

Praemium

At Praemium, which saw large increases across a range of business metrics, NPAT was up 55 per cent from FY24 hitting $13.6 million and revenue from contracts was up 25 per cent from $82.7 million to $103 million. The platform also reported some $30.7 billion in FUA, up from $28.1 billion in FY24.

According to Praemium chief executive and executive director Anthony Wamsteker, FY25 marked a “pivotal year” for the platform, noting its “disciplined execution on strategy that has delivered strong operational and financial progress”.

“Our leadership in the high-net-worth segment continues to build momentum, underpinned by significant enterprise client wins across Spectrum, SMA, and Scope+,” Wamsteker said.

“With the successful integration of OneVue well underway and continued investment in innovation, Praemium is exceptionally well-positioned to capture the long-term growth opportunity in the Australian wealth market and deliver sustained value for shareholders.”

Wamsteker credited Praemium’s solid growth to its focus on the high-net-worth and ultra-high-net-worth market segments, noting the ongoing demand for “comprehensive advice and a total view of wealth”.